Fiat Auto and Suzuki have signed a letter of intent to study the feasibility of production under licence of Fiat’s Euro 5-compliant two litre JTD Multijet diesel engine.

Production of engines in Asia is expected to commence by 2010. Annual output is initially estimated at around 100,000 units. The engines will power a number of Suzuki models in various markets worldwide.

Fiat Auto and Fiat Powertrain Technologies will provide Suzuki with technological assistance and training during the various stages of the licensing agreement as well as engines until Suzuki starts production.

The Fiat Group components unit, Magneti Marelli, will supply engine injection components and systems to Suzuki for engines it builds.